National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: (703) 683-0155 fax: (571) 970-2279 Web site address: www.nationalrenderers.org

Issue Briefs

June 2015 Page 1. 10 Facts About Rendering 1

2. Growing Markets: Market Access Program 2 & Foreign Market Development Program

3. Biofuel Tax Credits & the Renewable 3

Fuel Standard 4. EPA’s Rules on Waters of the U.S. and Ozone 5 5. International Trade Agreements: TPA and 8

TTIP 6. Federal Highways & the Need to Increase 9

Truck Weights 7. Food Aid 11

8. Food Waste & Sustainability 12

9. The U.S. Rendering Industry 14 10. About the National Renderers Association 18

National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 571/970-2279; Web site address: www.nationalrenderers.org

10 Facts About Rendering

June 2015

1. Rendering is Recycling - Rendering is the cooking and drying of animal coproducts that remain after removing the meat people eat.

2. A Secret No More - People use rendered products every day in soaps, paints,

varnishes, cosmetics, pharmaceuticals, shaving cream, deodorant, crayons, leather (handbags, car seats, furniture), lubricants, caulking compounds, candles, cleaners, paints, perfumes, polishes, rubber products, plastics, agricultural fertilizers and

even explosives. Many people just don’t realize it.

3. Good for Animal Health - Rendering produces fats and proteins that are

important nutritional ingredients in foods used by consumers and farmers to feed their pets as well as livestock, poultry and fish.

4. More Recycling – From Restaurants - Renderers pick up used restaurant fry

grease and oil, and clean and recycle them into ingredients for animal feed, biodiesel and renewable diesel for cars, trucks, airplanes and other equipment.

5. Rendering is Sustainable – Recycling of animal coproducts sequesters at least five times as much greenhouse gas emissions (GHG) as it emits. Rendering produces fewer emissions than landfilling or composting. Rendered products help

animal agriculture and customer companies reduce their environmental footprint and become more sustainable. If all renderable products were landfilled, all available space would be full in four years and pose a public health threat.

6. Clean and Safe – The high temperatures used in rendering assure animal food and consumer safety to protect against bacteria, viruses and safety hazards.

7. Consumers Can Have Confidence - Renderers comply with all required federal, state and local regulations and laws. They conduct hazard analyses, control food safety hazards, and use good manufacturing practices in their Code of Practice

stewardship program. Renderers will be ready to adhere to new rules under the Food Safety Modernization Act (FSMA) when final regulations take effect.

8. Volume In, Quality Out - Rendering is a high-volume, high-tech industry. Renderers collect 56 billion pounds of raw materials a year. They recycle raw materials by cooking and drying 10 billion pounds of fats/oils and 9 billion pounds

of protein each year. Meeting customer needs for quality is a high priority.

9. Skilled Workforce - Rendering plants are not labor intensive, but require highly trained workers who use high-tech controls to operate high-temperature cookers,

centrifuges and presses. Renderers have a high labor retention rate.

10. Lots of Trucks – The rendering industry transports 44 billion pounds of products

mostly by truck. Renderers own and control some of the largest private trucking fleets in the country.

National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 703/683-2626; Web site address: www.nationalrenderers.org

NRA Position

NRA strongly supports federal annual appropriations of $200 million

and $34.5 million, respectively, for USDA’s Market Access Program

(MAP) and the Foreign Market Development (FMD) program.

Strong funding is also needed for USDA’s Foreign Agricultural Service

to implement these programs and provide export assistance.

The Issue

Exports of rendered products are vital to the U.S. rendering industry. Nineteen percent of total production is exported. Over 18 percent of rendered animal

proteins and 20 percent of rendered fat are exported. Top markets are Mexico, China, Indonesia and Canada. NRA receives approximately $1.7 million annually from MAP and FMD programs to develop, maintain and open foreign markets. NRA cost-shares with USDA to operate 45 projects in 57 countries, two overseas offices (Hong Kong and Mexico

City), and nine consultants in aquaculture, poultry, pet food and European Union policy. These programs enable the industry to have a unified effort to grow its

exports.

Return on Investment

The increase in market development spending for MAP and FMD since 2002 substantially expanded overall U.S. export market share, resulting in a $6.1 billion

increase in the annual value of U.S. agricultural exports, according to a 2011 study by IHS Global Insight commissioned by USDA. For every additional $1 spent by government and industry on market development during this period, U.S. food and

agricultural exports increased by $35 … a 35-to-1 return on investment.

2014 Farm Bill

The Agricultural Act of 2014 (the “Farm Bill”) authorized funding for the MAP and

FMD programs for the next five years. MAP is authorized at $200 million per year and FMD at $34.5 million per year through September 30, 2018.

FY 2016 Appropriations

Even though funding for MAP and FMD is authorized in the Farm Bill, monies must

be appropriated by Congress on a yearly basis. The House and Senate Agriculture Appropriations Subcommittees are now working on their respective versions of the FY 2016 Agriculture Appropriations bill.

Growing Markets: Market Access

& Foreign Market Development

June 2015

2

National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 703/683-2626; Web site address: www.nationalrenderers.org

NRA Position

Tax Credits: NRA supports extension of three important tax credits that expired December 31, 2014, and recommends making them permanent

in tax law:

­ $1-per-gallon blenders’ tax credit for biodiesel

­ $1-per-gallon blenders’ tax credit for renewable diesel, and ­ 50-cent-per-gallon alternative fuel mixture tax credit (AFMTC)

Renewable Fuel Standard (RFS): NRA encourages expansion of the

RFS based on total production capacity of eligible biofuels, including

biomass-based diesel, renewable diesel and imported product. EPA’s May 29 proposals to increase the RFS in 2014-2017 are a step in the right

direction; however, NRA believes higher levels are warranted.

The Issue

Federal Tax Credits Current law provides federal tax credits and the RFS as incentives to develop and

commercialize alternative energy products, including biofuels.

The $1-per-gallon tax credits are paid to the blender for mixing biodiesel with petroleum-based fuel at a 10% rate. The AFMTC is used by renderers and others who burn their own coproducts as boiler and heating fuel. These tax credits have

been extended on an ad hoc yearly basis which creates great uncertainty and challenge for the young biofuels industry to operate.

Renewable Fuel Standard

Biofuels are mandated to be blended with petroleum distillates at set percentages and total gallons annually under the federal RFS. The RFS was modified in 2009 to

ensure “advanced biofuels,” including biodiesel/renewable diesel and non-corn ethanol, are included in the RFS.

NRA welcomes EPA’s recent proposal for a four-year RFS program through 2017 for biomass-based diesel and a three-year program for advanced biofuel. This will help

reduce significant stress in the biofuels industry from delays by EPA in establishing volumes under the RFS.

Biofuel: Tax Credits & the

Renewable Fuel Standard

June 2015

3

On May 29, EPA proposed an RFS for biomass-based diesel of 1.63 billion gallons in 2014, 1.7 billion gallons in 2015, 1.8 billion gallons in 2016 and 1.9 billion gallons

in 2017. EPA recommends an RFS for advanced biofuels of 2.68 billion gallons in 2014, 2.9 billion gallons in 2015 and 3.4 billion gallons in 2016.

Rendered Products and Biofuels

The rendering industry not only refines biodiesel and renewable diesel, but many of its companies supply fats and oils used as feedstocks to produce these biofuels, as

well as boiler fuel. They are petroleum distillate replacements, both on and off road, and include fuel for trucks, jets and industrial furnaces.

Rendered fats and oils account for 22 percent of the feedstock used in biodiesel production. NRA’s member companies are actively engaged in the biofuel industry,

either as refiners or as suppliers of large amounts of feedstocks. Animal-based biodiesel and renewable diesel – refined by using non-edible animal

coproducts (such as yellow grease and tallow), and recaptured restaurant oils and greases – are truly recycled and renewable alternative fuels. These fuels are highly

sustainable because they use coproducts as a feedstock instead of relying on virgin materials. Supplies of biodiesel can be renewed indefinitely because rendered

feedstocks and oil/grease are domestic coproducts of the growing and globally competitive U.S. animal agriculture sector.

NRA supports a federal energy policy that rewards efficiency, encourages development of alternative fuels and ensures a level competitive playing field as the

U.S. strives to diversify its energy sources and reduce carbon emissions. The rendering industry encourages federal alternative fuel programs that are

biofuel and feedstock neutral, and ensures all biofuels, including biodiesel and renewable diesel, are treated equitably. Renderers support continued development

of the relatively young and eco-friendly biofuels industry. NRA focuses on biofuel feedstocks from animal coproducts and grease/oil collection,

and takes no policy position on other biofuels, such as ethanol.

Biodiesel and renewable diesel contribute significantly to meeting the goals of the RFS program, including a reduction in greenhouse gas emissions (GHG), technological innovation, enhanced energy security and economic development.

Biodiesel reduces lifecycle GHG emissions by 57-86 percent more than petroleum diesel, according to EPA. The rendering industry provides a significant reduction in

carbon dioxide equivalent (CO2e) GHG emissions by sequestering about four times more CO2e as it emits.

By encouraging continued development of new technology and infrastructure, the RFS reduces cost, improves efficiency and provides jobs in the relatively young

biofuels industry. This enables biodiesel and renewable diesel to continue their important contribution to diversifying the nation’s fuel supply from fossil fuels and reducing our dependence on global fossil fuel markets.

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National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314

phone: 703/683-0155; fax: 703/683-2626; Web site address: www.nationalrenderers.org

Waters of the U.S. Rule

NRA Position NRA supports legislation to require that the “waters of the U.S.” regulation

(WOTUS) be withdrawn and reproposed by EPA and the U.S. Army Corps of Engineers to ensure the opportunity for ensure robust economic activity

with meaningful stakeholder input.

“The Federal Water Quality Protection Act,” S. 1140, introduced by Sens. John Barasso (R-WY) and Joe Donnelly (D-IN), establishes mandatory

principles that must be followed in the new proposal.

“The Regulatory Integrity Protection Act,” H.R. 1732, introduced by Rep. Bill

Shuster (R-PA) and passed by the House on May 12 by a 261-155 vote, requires EPA and the U.S. Army Corps of Engineers to withdraw their proposed WOTUS rule and repropose a new rule after broad stakeholder

consultation and an economic impact analysis.

The Issue

EPA’s new WOTUS regulation, issued May 27, appears to immensely extend the agency’s jurisdiction under the Clean Water Act (CWA). NRA is analyzing the new

rule, but initial review suggests it is virtually as expansive as initially proposed.

Under the proposed rule, the CWA (which now applies to “navigable waters”), would

have been expanded to cover many areas not currently regulated by the Act, such as ephemeral drains, ditches and wetlands that only contain water when it rains.

Man-made ponds, floodplains, riparian areas, dry streambeds and seasonally wet areas would also be included.

In effect, EPA proposed that almost any low spot where rainwater collects could become subject to regulation.

Regardless of whether these lands are wet or dry on a given day, under the

proposed rule renderers would need a federal permit to improve, expand or change their operations and land use on or near these lands. Even fighting erosion could conceivably need a permit. Permits might take years, or might never be issued.

Farmers, ranchers, homebuilders and other small businesses have led the charge in opposing EPA’s proposed rule. They fear another barrier to economic development

and investment, and new layers of reviews and permitting, both of which would give federal officials more control over how landowners use their property.

EPA’s Waters of the U.S.

& Ozone Rules

June 2015

5

Regulation must be balanced in a manner that responsibly protects the

environment and recognizes the rights of states, businesses and individuals without an unnecessary and costly expansion of the federal government’s role, and

unreasonable and burdensome regulation of small businesses, farmers, and families.

Ozone Air Quality Standard Proposed Rule

NRA Position NRA supports the following legislation to halt the damaging impacts of

EPA’s proposed reduction in ground-level ozone:

“The Clean Air, Strong Economies (CASE) Act,” S. 751/H.R 1388, introduced

by Sen. John Thune (R-DN) and Rep. Pete Olson (R-TX), would prohibit EPA from lowering the ozone standard until at least 85 percent of counties not

meeting current standards achieve full compliance and come into “attainment.”

“The Ozone Regulatory Delay and Extension of Assessment Length (ORDEAL) Act,” S. 640/H.R. 1327, introduced by Sen. Jeff Flake (R-AZ) and Rep. Matt Salmon (R-AZ), would move EPA reviews from every five to every ten years

and prevent EPA from reviewing the current ozone standard until 2018.

The Issue Under the Clean Air Act (CAA), EPA must set national air quality standards for a

number of pollutants considered harmful to public health and the environment.

Rendering plants use fuel to generate steam for recycling (cooking) of animal

coproducts in boilers. Fuel emissions include ozone precursors that would be affected by EPA’s December 2014, proposal to lower the National Ambient Air

Quality Standards (NAAQS) for ozone to 65-70 parts per billion (ppb), significantly lower than the current 75 ppb.

Since a permit is required under the CAA in order to operate boilers, the operation, expansion and modernization of rendering plants may be hindered or impossible if they are in new non-attainment areas. EPA acknowledges the proposed NAAQS

cannot be met in many areas with use of current emission control technology.

EPA says 227 counties in 27 states are considered non-attainment under current

standards and these would face new, more stringent standards in the proposed rule. Reducing the NAAQS to 65-70 ppb would put large areas of the country into

non-attainment (see attached U.S. map). EPA is also considering further reduction to 60 ppb, which would automatically put most of the nation into non-attainment.

Ozone levels have dropped significantly in recent years and are expected to continue to drop as counties in non-attainment comply with current standards.

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Source: U.S. Chamber of Commerce

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National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 703/683-2626; Web site address: www.nationalrenderers.org

NRA Position

Exports are vital to the American rendering industry. Nineteen percent of total U.S. production is exported. Over 18 percent of rendered animal

proteins and 20 percent of rendered fat is sold overseas. Exports provide U.S. jobs and support domestic prices.

NRA urges Congress to approve Trade Promotion Authority (TPA) so

the U.S. can negotiate international trade agreements from a position of strength, and to ensure their timely review by Congress. Without TPA, it would be difficult to finalize agreements with the threat of Congress adding

amendments once negotiations are complete.

NRA supports the Transatlantic Trade and Investment Partnership (TTIP) to open up a $200 million-plus overseas market for U. S. rendered fats. Current exports face non-tariff technical trade barriers.

TTIP must include a science-based agreement to allow U.S. exports

of tallow for biodiesel and oleo chemical uses to the EU. TTIP should be consistent with internationally recognized market access standards for

tallow of the World Organization for Animal Health (OIE). TPA is needed to move forward on TTIP negotiations.

The Issue

TPA would allow the President to negotiate international trade agreements which Congress can approve or disapprove without amendment or filibuster. The Senate passed TPA on May 22. The House is expected to act on the bill this month.

TTIP is a trade agreement being negotiated between the U.S. and the European

Union (EU). The U. S. goal is to provide greater compatibility and transparency in trade and investment regulation, while maintaining high levels of health, safety and

environmental protection. TTIP offers an opportunity to expand trade between important strategic and economic partners.

The TransPacific Partnership (TPP) is another trade agreement under negotiation

between the U.S. and Pacific Rim countries. NRA takes no position on TTP since U.S. rendered products do not face burdensome trade restrictions in the Pacific region.

International Trade Agreements

& Rendered Product Exports

June 2015

8

National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 571/970-2279; Web site address: www.nationalrenderers.org

Federal Highway Program Reauthorization/Highway Trust Fund

NRA Position

NRA urges Congress to enact a long-term transportation bill

reauthorizing federal highway programs and find a long-term funding

system for the Highway Trust Fund (HTF) to repair and rebuild the nation’s highways, bridges and commuter systems.

Renderers own some of the largest truck fleets in the country. They are highly dependent upon trucks to transport 44 billion pounds of

unprocessed animal coproducts, and rendered fats and protein meals each year. Safe, efficient and timely trucking is essential.

The Issue

In late May, Congress passed a two-month stop-gap extension of federal highway programs, and is looking at ways to modify the federal HTF to keep it solvent

moving forward. Authorization for the programs and the fund, called the “Moving Ahead for Progress in the 21st Century Act” (MAP-21), was set to expire May 31. Without congressional action by August, the Department of Transportation (DOT)

will not be allowed or have enough money to pay for highway and transit projects.

Further inaction from Congress has a price. Infrastructure projects take years of planning, and states will not start them without knowing how much money they will

receive – and on what schedule – from the federal government. MAP-21 needs to be reauthorized and a new long-term funding mechanism devised to avoid perpetual uncertainty in year-to-year funding.

The multiple short-term extensions Congress has used to fund the nation’s transportation network before MAP-21 and in the past two years undermine infrastructure safety and reliability. These extensions cost the country 30 percent

more than if Congress actually fixed the funding of the HTF, according to some estimates. Some 140,000 U.S. bridges need repairs or replacing, and 40 percent of

the nation’s roads are in serious disrepair, reports the American Trucking Association.

Federal funds provide 52 percent of the average funding for state highway and bridge construction and maintenance. The economic consequences of not paying

contractors and employees will send shockwaves throughout our economy if MAP-21 is not enacted. Hundreds of projects slated to begin will not happen.

Federal Highways & the

Need to Increase Truck Weights

June 2015

9

Each dollar invested in highway construction generates $1.80 of Gross Domestic Product in the short term, according to Standard & Poor's DRI. Every dollar

taxpayers invest in public transportation generates about $6 in economic returns, reports Cambridge Systematics. According to the Department of Transportation,

each $1.25 billion in highway capital investment supports 34,779 jobs. Need to Increase Truck Weights

NRA Position:

NRA supports more efficient and safe trucking.

Congress should enact legislation to increase truck weights to 97,000 pounds on interstate highways with an additional axle and braking

power, as proposed in the “Safe and Efficient Transportation Act” in the previous Congress. The required axle would maintain safety, including braking, handling capacity and current weight per tire, without changing the

size of the truck.

NRA recommends including the “Safe and Efficient Transportation Act” in this year’s highway reauthorization bill after release of the

safety conclusions of the “Comprehensive Truck Size & Weight Limits Study” by DOT.

Need for Heavier Weight Limits

For over 25 years, the federal vehicle weight limit has been set at 80,000 pounds for five-axle trucks, a regulation that now challenges safety, economy, the environment and infrastructure.

Companies shipping heavy goods, such as renderers, are currently required to use

more vehicles than necessary because their trucks often hit the federal weight limit with significant space remaining in trailers, i.e. less-than-truckload (LTL) shipping. At the same time, freight hauled by trucks in the U.S. is expected to double by

2035, according to the Coalition for Transportation Productivity.

DOT estimates the following: Raising the federal weight limit to 97,000 pounds will save 2 billion gallons of

diesel fuel each year and cut emissions by 19 percent per ton mile.

Allowing six-axle trucks to carry more weight on interstates will save $2.4 billion in pavement restoration costs over the next 20 years.

Raising the federal vehicle weight limit will allow American producers to reduce the number of shipments needed to deliver goods, making them more productive and

competitive.

Since the U.K. raised its weight limit to 97,000 pounds for six-axle vehicles in 2001, fatal truck-related accidents have declined by 35 percent. Successful pilot programs in Maine and Vermont demonstrate properly designed heavier trucks can be used

safely in the U.S.

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National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 571/970-2279; Web site address: www.nationalrenderers.org

NRA Position

NRA opposes S. 525, the “Food for Peace Reform Act of 2015,”

introduced by Sen. Bob Corker (R—TN), to repeal Title II of the Food for

Peace Act and outsource its functions to the United Nations (UN). This would eliminate American agriculture’s contribution of food and feed to the

program.

By repealing Title II, the Emergency and Private Assistance Program,

S. 525 would eliminate donations of American food, and instead provide U.S. funds to foreign interests without accountability. Cash transfer

vouchers could be used by anyone for anything, not just food.

The Issue: The Food for Peace program’s Title II is the main avenue for U.S. food foreign

assistance. It provides for donations of U.S. agricultural commodities to implement emergency and non-emergency programs worldwide.

Title II is administered by the U.S. Agency for International Development and implemented by private voluntary organizations. Funding varies depending on

emergency needs. Title II provided 2.4 million metric tons of commodities in 2009. The total program cost, including food aid and support funds, was $2.6 billion.

Title II Benefits Renderers:

Opportunity for purchase of $14 million of rendered fats and $11 million of processed animal protein meals

USDA procurement is based on U.S. domestic values of rendered fats Reduced risk (selling to the U.S. government) New market development at minimal cost while benefitting the host country

Tallow and yellow grease are already included in Food for Progress, another foreign

assistance program, with requests from Ghana and Dominican Republic valued at over $6 million.

NRA is working to gain approval to include animal protein meals in the Food for Peace and the Food for Progress programs.

Food Aid

June 2015

11

National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 703/683-2626; Web site address: www.nationalrenderers.org

NRA Position

Rendering is the best use of animal coproducts and recycled

restaurant greases/oils because it lowers greenhouse gases (GHG).

Rendering is more eco-friendly than other recycling methods, such as

landfilling or composting, since it produces fewer greenhouse gas emissions.

EPA’s Hierarchy of Food Waste Management ranks rendering as a “higher-use” for animal feed and biofuels than anaerobic digestion and composting.

The Issue

When animal coproducts and recaptured restaurant greases/oils are rendered, the process makes fats, refined oils and protein meals used in agriculture, consumer products, biofuels, and the oleo chemical industry. The materials renderers recycle

are prevented from entering landfills and municipal wastewater systems where they would decay and create GHGs that pollute and have a detrimental effect on the

environment.

Other recycling methods, such as composting, may get rid of the recyclable materials and produce amendments for soils, but the composting process also

produces large amounts of carbon dioxide and methane that is not captured. Unlike the rendering process, gases from composting add to the GHGs in the

atmosphere that may contribute to climate change. Sustainable Advantage of Rendering

When materials such as meat trimmings are rendered, renderers recycle the organic material and carbons back into the lifecycle of the planet. Rendering allows

for the sequestration or recycling of carbon as a beneficial method to improve the health of the public and planet.

Rendering does not bury the useful organics our society needs - it keeps these organics available for life.

Rendering does not release GHGs into the atmosphere from animal coproducts. These rendered products stay in the biocycle as fats and protein meals that become

part of an animal or a plant via the feed or fertilizer made from rendered materials. These animals and vegetables, in turn, contribute to the human food chain by giving us salads, grapes, eggs, milk, cheese or even the meat we buy and eat in

our local grocery store.

Food Waste & Sustainability

June 2015

12

Rendered products are also important ingredients in pet food and help ensure sustainable, nutritious and affordable options for dogs and cats.

EPA’s Hierarchy of Food Waste Management (below) ranks rendering

above anaerobic digestion and composting. When evaluating sustainability, the best possible use for animal coproducts should be

considered. Rendering products fall within the categories of Feed Animals and Industrial Uses, which EPA considers a “higher use” than compost and landfill.

The EPA pyramid below ranks the most preferred food recovery methods. Priorities are first people, then animals, fertilizer, biofuels, compost, and lastly, landfill.

Source: http://www.epa.gov/foodrecoverychallenge/track_It.htm

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National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 571/970-2279; Web site address: www.nationalrenderers.org

Nothing Wasted

For 180 years, the North American rendering industry has empowered society to

follow this wise advice: “nothing wasted.” With little fanfare, the industry is a major force in ensuring a clean and healthy environment, recycling the things we don’t want to or can’t eat – bones, grease or hides – into usable, valuable products for

consumers long before the word “recycling” became a common term.

From its roots in creating tallow for soaps and candles and hides for leather, the North American rendering industry has responded to the changes in society in what we eat, how we clean ourselves and our homes, what we feed our pets, what we

use to build, and how we preserve and beautify our environments.

28 Million Tons Recycled Every year the North American rendering industry recycles more than 56 billion

pounds of coproducts from livestock and poultry farming, meat processing, supermarkets and restaurants. Without renderers, consider how this material

would be disposed and at what cost to public health, the environment and taxpayers. Using high-tech controls that run high-temperature cookers, centrifuges and presses, renderers turn this waste material into valuable ingredients — high

quality fats and proteins.

Other industries rely on these ingredients for products important to people today, including soaps, paints, varnishes, cosmetics, pharmaceuticals, crayons, leather, textiles, lubricants, rubber products, plastics, animal food ingredients, agricultural

fertilizers and explosives. Farmers rely on feed ingredients for meat, poultry and fish production. In fact, the rendering industry returns the majority of its finished

products to the feed and pet food industry. Renderers produce high-energy fats and high-quality protein ingredients that supplement animal diets as guided by government regulations. These ingredients lead to more efficient production of

beef, veal, pork, poultry, fish, eggs, fish and milk.

An informational video explaining the process, history, uses, benefits, and more of the rendering industry is available at the website www.nationalrenderers.org.

$6 Billion Industry is Vital Link in Agriculture Chain, Helps Communities

The economic impact of the rendering industry is significant, and the manufacture and trade in rendered products is critical to North America’s agricultural economy

and balance of trade. Exports represent 19 percent of the total production of

The Rendering Industry June 2015

14

renderers. More than 18 percent of rendered animal proteins are exported and over 20 percent of rendered fat is sold overseas. Important export markets are Mexico,

China, Indonesia, and Canada.

For communities, this recycling of perishable coproducts significantly reduces solid waste disposal and the cost to manage it. Renderers also contribute to local tax bases that support local services and infrastructure. Perhaps most importantly,

rendering plants offer much-needed employment opportunities in rural areas.

Rendering Plants Are High-Tech About 250 rendering plants operate in North America. Approximately 95 of these

are associated with a slaughtering facility (packer/renderers) and process only that facility’s coproducts. The other 155 are independent facilities that gather raw

material from other processors, supermarkets, butcher shops and restaurants.

The modern rendering plant is a high-tech system far advanced from the early days

when workers were more exposed to the raw material and used simple boiling and separation, or what was called “wet rendering.” Today plants use dry rendering, a process that releases fat by dehydrating raw material in a batch or continuous

cooker. This cooking and drying process yields fat of varying grades and also protein meals for animal, poultry and aquaculture feeds. It eliminates the direct

contact of raw material with added water and live steam, thus avoiding the possibility of contaminated wastewater from processing.

Batch Cooking

In batch cooking, a vessel is filled with raw material and sealed. The material is processed under controlled conditions using times and temperatures related to the type of raw material. The cooked material’s temperature ranges from 250°F to

275°F. It is discharged to a percolator drain pan where a perforated screen allows the fat to drain away from the protein solids, also known as tankage.

After about one hour of draining, the solids still contain about 25 percent fat. They are conveyed to the screw press to complete the separation of fat from solids. The final protein solids have residual fat content of 9-13 percent, which varies from the

content of the raw material, such as beef, poultry and fish. The protein solids are known as cracklings, which are then screened and ground with a hammer mill to

produce protein meal. After the product is discharged, the cycle is repeated. Continuous Cooking

The first continuous rendering system was developed in the early 1960s. Using this

method, the raw material is fed semi-continuously to the cooker and the cooked material is discharged at a constant rate. A continuous rendering system normally consists of a large cooking unit, whereas the batch system consists of one to 12

smaller cooking units. This system usually has a higher capacity than the batch process and enables more material to be processed in less time.

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Computerized Control Centers

Most rendering plants contain a process control center located inside an environmentally controlled room. Operators use a keyboard to manage control of

the process if needed. The data acquisition system collects all desired process data and stores it for recall as a diagnostic and trouble-shooting tool.

Odors

Rendering plants use air “scrubbers” to reduce and remove odors. Any odors come primarily from the cooking of the raw material. No federal regulations control the emission of odors. Instead, state and local air pollution control agencies regulate

plants using various measures to determine if the odor requires plants to fix the problem.

Product Quality

Rendered product quality relies on a combination of plant efficiency and monitoring using both voluntary and government standards. The raw product must be heated

as quickly as possible to prevent enzymes and bacteria from degrading the fat and protein. So that it will cook uniformly, raw product is chopped into pieces about an

inch in diameter or smaller, which also helps to increase the production rate and decrease energy costs.

Various product safety controls are used voluntarily throughout the industry, e.g. Hazard Analysis Critical Control Point (HACCP) monitoring and good manufacturing

practices (GMPs). These procedures ensure rendered materials are produced in a sanitary and wholesome way. The cooking destroys all bacteria and other pathogens, but the resulting meals must be stored, handled and distributed under

carefully controlled conditions to prevent post-process recontamination. Renderers follow certain standards to eliminate this possibility. They perform microbiological

tests to verify processes and hygiene as recommended by NRA’s Animal Protein Producers Industry (APPI) Committee. Use of APPI stewardship standards provides assurance to customers for rendered meal products.

Rendering Offers Diverse Job Opportunities

Rendering is a highly specialized manufacturing process demanding people trained and experienced in many fields who also learn skills unique to rendering while on

the job. In the industry’s independent sector, many companies have a tradition of family ownership over several generations. In this industry, people have great

pride in their contribution to their communities, agricultural production and consumer goods manufacturing.

Rendering companies offer good jobs in many business fields, including computer programming, information systems, data processing, accounting and finance,

quality control, marketing, risk management, customer and community relations, human resources, office administration, secretarial services, engineering and legal

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counsel. Renderers also employ plant managers, lab technicians, chemists, nutritionists, mechanics, boiler operators, skinners, hide handlers, truck dispatchers

and drivers, security guards, environmental scientists and maintenance workers.

North American rendering plants adhere strictly to local, state and federal worker safety and health regulations. As rendering continues to advance in technology and quality control, and as the world’s growing population increases demand for

rendered products, employees can expect a bright future in this industry.

The Industry’s Future With 95 percent of the world’s population outside North America, growth for the

industry will mainly be in overseas markets lacking the agricultural infrastructure to produce consistent quality products competitive with imports, or in established

markets that find North American products cost-effective relative to alternatives. Industry analysts suggest the rendering industry will continue to consolidate

through mergers and acquisitions, similar to other industries. Renderers will continue to upgrade existing plants to improve efficiency, working conditions and

quality control. They will also improve product quality and develop new value-added products, such as nutritionally improved animal meals and biofuels. The

rendering industry will also continue to focus on biosecurity, with progressive programs to eliminate the possibility of biological hazards throughout their processing.

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National Renderers Association, 500 Montgomery Street, Suite 310, Alexandria, VA 22314 phone: 703/683-0155; fax: 571/970-2279; Web site address: www.nationalrenderers.org

NRA & the Rendering Industry The National Renderers Association (NRA) is the international trade association for the industry that safely and efficiently recycles animal coproducts and recaptured restaurant greases/oils into valuable products for the livestock and poultry feed, pet food, chemical, cosmetic and energy industries. NRA represents its members’ interests to Congress and federal regulatory agencies, promotes greater use of rendered products, and fosters the opening and expansion of trade between North American exporters and foreign buyers. NRA’s 36 member companies operate 178 rendering plants in the U.S. and Canada. Members represent over 95 percent of North American production by independent renderers (many of which are multi-generation family-owned companies) and integrated packer/renderers (those processing only their own animal coproducts). The North American rendering industry creates a variety of products critical to other industries. Companies are developing new products, such as fuels and enzymes, to match changing demands worldwide. Rendered products include fats, animal protein meal, chemicals, fatty acids, tallow, grease and hides. Their high-quality fats and proteins improve the nutrition of farm animals, poultry and pets. Renderers also contribute essential ingredients for industrial and consumer products, such as lubricants, plastics, printing inks and explosives, and the many items that consumers count on — including cosmetics, shaving cream, deodorant, perfumes, polishes, cleaners, paints, candles and caulking compounds. NRA Programs and Activities NRA addresses current industry issues, promotes domestic and international marketing, encourages research and provides education and information for the industry, government and the public. NRA’s government and regulatory affairs activities advocate for and safeguard the interests of the rendering industry. NRA emphasizes a spirit of cooperation and scientific support with federal agencies and legislators so that they will better understand the rendering industry, its products and the overall industry’s economic and environmental contributions. For government research and policy consideration, NRA may suggest new protocols in food and feed safety, and illustrate these ideas with members’ voluntary efforts in such areas as the stewardship Rendering Code of Practice and microbiological monitoring.

National Renderers Association

June 2015

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NRA’s international programs develop markets for rendered products all over the world. The Association conducts technical seminars and feed trials, participates in trade shows, brings study groups to the U.S., provides subject matter experts and delivers other general trade services to U.S. suppliers and foreign buyers. NRA also improves foreign market access by working to eliminate artificial and nontariff trade barriers, and monitors new and existing export opportunities and emerging trade patterns. NRA participates in USDA’s Market Development Program (MAP) and Foreign Market Development (FMD) Program to expand overseas sales of rendered products. NRA operates regional offices in Hong Kong and Mexico. NRA also works with consultants in the European Union, Turkey, Russia, Brazil and China who focus on developing and maintaining markets for rendered products in more than 80 countries. NRA also serves its members by providing important technical findings and support, an industry website (nationalrenderers.org), blog and twitter accounts, and informational graphics and brochures. NRA publishes an award-winning trade magazine, Render. Historical Highlights, Cooperating Associations NRA was created in 1933 by a small group of renderers to address the common concerns of diverse companies. One of their first goals was to reverse the U.S. position as an importer of animal and plant fats and oils that competed with U.S.-made products. Several other historical highlights offer a snapshot of NRA’s work for the industry. After World War II, NRA began work with USDA to conduct research on new uses for rendered products. In the 1950s, NRA’s efforts helped to stimulate the use of fats and protein in animal feed, and to raise export levels to nearly 50 percent of the American rendering industry’s production. By the early 1960s, the Association expanded to an international level, opening offices in Europe and Asia. In 1962, the Association established an independent organization, the Fats and Proteins Research Foundation (FPRF), to expand the industry’s research efforts. Through FPRF in the early 1970s, NRA initiated research on measuring odors so the government could set practical standards for odor tolerance. NRA also focused on improving worker safety and preventing plant fires. FPRF has funded over 575 research projects and is now focused on feed safety, plant optimization and new uses. FPRF is managed by the NRA. Responsible Stewardship: Safety and Quality The North American rendering industry is committed to stewarding its products from start to finish. Safety, quality and responsibility are essential in today’s highly competitive market. The Animal Protein Producers Industry (APPI) was established in the 1980s to promote animal feed safety and develop a voluntary Salmonella education and monitoring program. APPI merged with the NRA in 2006. Its programs have evolved to include the stewardship Rendering Code of Practice which trains industry personnel to continually evaluate and improve practices to enhance consumer confidence and facilitate domestic and global trade.

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